5 Tips to land the best education loan in India Education loans have been helping students to achieve their aspirations for a few decades now. And they have become even more accessible, fast, and transparent with time. Financial lenders have made the process of getting an education loan more streamlined and thus, better. This article will help you ascertain the right lender for yourself and get the best education loan in India. Here are those 5 tips we promised: See if all expenses are covered You can say you got the best education loan in India when your lender promises to cover all of your education expenses. Most NBFC lenders offer to cover your college tuition fee, travel expenses, accommodation expenses, library fee, examination fee, the stationery expenses and money needed for a laptop and so on. Ask your lender if they will cover all of these expenses then you can move ahead with the education loan process. Ask for low interest rate – Many lenders will promise you an education loan. But you have to look at their interest rate before moving further with the loan application process. If you have a great academic record and have secured a seat at a reputed university you can negotiate a lower interest rate than usual. If the interest rate is less by 0.5% than usual will help you save lakhs of rupees in its repayment overtime. If you have got a seat at a decent college, you can still try to negotiate a low interest rate with your lender. Compare the services the lenders provide – Many lenders in the market make getting a loan from them as easy as possible. They offer services like doorstep verification service. Many times, universities ask students to pay the tuition fee or prove that they can pay it before giving them a seat. In such a case, the student needs a proof of funds or pre-admission loan. Various lenders make this possible along with other services like pre-Visa loans and so on. Ask your lender what services they provide that makes them the best to get an education loan from.
Look for suitable moratorium period – Usually, lenders provide a grace period. It ranges upto 1 year from completing your education or 6 months from getting your first job, whichever comes earlier. The student is not expected to pay the EMIs of the loan in this time period. This grace period is called the moratorium period. Ask your lender to keep the moratorium period as suitable to your paying potential as possible. Negotiate flexible EMI payments – Once you complete your education, you can ask the lender to set the EMI value to your paying back potential. If the EMI value is less, the payback tenure will be more and vice versa. If the tenure is longer, you pay more overtime than you would pay if the education loan EMI value were high. In short, the higher the EMI value, the lesser the tenure and the lesser you pay overtime. Ask your lender to keep the EMI value as much as you can handle. So, these are the 5 tips to land the best education loan in India. Education loans would look affordable and you would not have to worry about financing your higher education affordably if you follow these tips while negotiating a loan. All the best! To know more:Facebook:https://www.facebook.com/AvanseEducationLoan/ Twitter:https://twitter.com/avanseeduloan YouTube:https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug Instagram:https://www.instagram.com/avansefinancialservices/